1.1 This policy establishes the framework for the Organization's compliance with the Employees' State Insurance Act, 1948 (the ESI Act), which provides for a self-financing social security and health insurance scheme for Indian workers. The ESI scheme provides medical, sickness, maternity, disablement, and dependants' benefits to covered employees and their families. This policy applies to all establishments of the Organization that fall within the ambit of the ESI Act — generally, factories employing 10 or more persons and other establishments employing 20 or more persons in notified areas — and covers all employees drawing gross wages up to the current ESI wage ceiling of Rs. 21,000 per month (or such revised ceiling as may be notified by the Central Government). The Organization shall ensure timely registration, contribution, and compliance with all provisions of the Act to protect the health and welfare entitlements of its eligible workforce.

1.2 The HR department shall register all eligible employees under the ESI scheme through the ESIC portal within 10 days of joining, generate their Insurance Numbers (IP numbers), and issue Pehchan Cards. The Payroll department shall ensure that employee and employer ESI contributions are correctly computed, deducted, and remitted to the ESIC through the online challan system by the 15th of the month following the wage month. Half-yearly returns shall be filed within the prescribed timelines. The HR department shall maintain an up-to-date register of covered employees and shall monitor changes in employee wages that may affect ESI coverage eligibility, particularly when employees' wages cross the statutory ceiling during a contribution period.

2.1 ESI contributions shall be computed on the gross wages of the employee, which includes all remuneration paid in cash, including basic wages, dearness allowance, city compensatory allowance, overtime wages, payment for holidays, and any other payment as defined under Section 2(22) of the ESI Act. The current contribution rates are: employee's contribution at 0.75% of gross wages and employer's contribution at 3.25% of gross wages, totalling 4.00% of gross wages. Employees earning daily wages of up to Rs. 176 (or such revised amount as may be notified) are exempt from paying their share of contribution, though the employer's contribution remains payable. Wages exclude annual bonuses, conveyance allowance paid for duty, encashment of leave, gratuity, and retrenchment compensation. The Payroll department shall apply the correct wage definition and exemptions when computing ESI contributions each pay period.

2.2 ESI coverage operates on a dual contribution and benefit period cycle. The two contribution periods are April to September and October to March of each year. The corresponding benefit periods are January to June and July to December respectively, creating a 6-month lag between contribution and benefit eligibility. Once an employee is covered under the ESI scheme at the beginning of a contribution period (i.e., their wages are at or below the statutory ceiling on the first day of the period), they remain covered for the entire contribution period and the corresponding benefit period, even if their wages subsequently exceed the ceiling during that contribution period. However, if an employee's wages are above the ceiling at the beginning of a new contribution period, they shall cease to be covered from that period. The HR department shall track wage changes at the start of each contribution period to determine continued eligibility.

3.1 Covered employees (Insured Persons) and their dependants are entitled to the following benefits under the ESI scheme: Medical Benefit — full medical care at ESI hospitals, dispensaries, and empanelled facilities, including outpatient treatment, hospitalisation, specialist consultations, and prescribed medicines, available from day one of coverage for the employee and their family; Sickness Benefit — cash compensation at 70% of average daily wages for up to 91 days in two consecutive benefit periods, available after contributing for 78 days in the relevant contribution period; Extended Sickness Benefit — at an enhanced rate of 80% of wages for up to 2 years for specified long-term diseases such as tuberculosis and cancer; Maternity Benefit — full wages for 26 weeks (extendable by 1 month on medical advice), available after contributing for 70 days in the preceding two contribution periods; Disablement Benefit — 90% of average daily wages during temporary disablement for as long as the disablement lasts, and a monthly pension for permanent disablement based on the degree of disability assessed by a Medical Board.

3.2 Dependants' Benefit is payable as a monthly pension to the eligible dependants (widow/widower, children, and dependent parents) of an insured person who dies as a result of an employment injury or an occupational disease notified under Section 52A of the ESI Act. The pension is distributed among dependants in proportions prescribed by the scheme: the widow/widower receives 3/5 of the full rate, each surviving child receives 2/5 of the full rate (subject to the aggregate not exceeding the full rate), and dependent parents receive a prescribed monthly amount if there is no widow/widower or child. Funeral expenses of up to Rs. 15,000 (or such revised amount as notified) are payable to the person who incurs the expenditure on the funeral of the deceased insured person. The Organization shall assist the family of the deceased employee in filing the necessary claims with the ESIC and shall provide all required employment records and wage certificates to facilitate timely processing.

4.1 Each covered employee shall obtain their ESI Pehchan Card (biometric smart card) through the ESIC portal or the nearest ESI Branch Office and register themselves and their eligible family members (spouse, dependent children, and dependent parents) with the ESI dispensary in their residential area. To avail of sickness benefit, the employee shall submit Form 10 (Sickness Benefit Claim) along with a medical certificate from the ESI-authorised medical practitioner. For accident or disablement benefit, the employee shall submit Form 14 (Accident Report) within 24 hours of the accident, followed by Form 12 (Claim for Temporary Disablement Benefit). Maternity benefit claims shall be submitted using Form 19 along with the expected date of confinement certificate. The HR department shall assist employees in completing and submitting all claim forms to the relevant ESIC Branch Office within the prescribed timelines.

5.1 The Organization shall maintain all registers and records as prescribed under the Employees' State Insurance (General) Regulations, 1950, including the Register of Employees (Form 7), Attendance Register (Form 12), Accident Book (Form 11), Inspection Book, and records of contributions paid and benefits claimed. All records shall be maintained for a minimum of 5 years from the date of the last entry or for such longer period as directed by the ESIC. The Organization shall permit inspection of records and premises by ESI inspectors and shall produce all required documents upon demand. Non-compliance with contribution obligations, failure to register employees, or obstruction of inspectors shall attract penalties under Section 85 of the ESI Act, including imprisonment up to 2 years and/or a fine up to Rs. 5,000, and damages under Section 85B for delayed contributions. This policy shall be reviewed annually or whenever the Central Government notifies changes to wage ceilings, contribution rates, or benefit entitlements.